Do people put more value on electricity produced using waste-to-hydrogen? Findings from South Korea. (16th September 2021)

• Record Type: Journal Article
• Authors: Lim, Kyung-Kyu; Kim, Ju-Hee; Yoo, Seung-Hoon
• Is Part Of: International journal of hydrogen energy. Volume 46:Number 64(2021)
• Page Start: 32358
• Page End: 32363
• Publication Date: 2021-09-16
• Subjects: Willingness to pay -- Plastic and vinyl waste -- Waste-to-hydrogen -- Pyrolysis clean oil -- Contingent valuation; Hydrogen as fuel -- Periodicals; Hydrogène (Combustible) -- Périodiques; Hydrogen as fuel; Periodicals; 665.81
• DOI: 10.1016/j.ijhydene.2021.07.118
• Languages: English
• ISSNs: 0360-3199

Abstract

Abstract: South Korea is pushing for the waste-to-hydrogen (W2H) project to reduce greenhouse gases and utilize plastic and vinyl waste (PVW) while reducing environmental pollution from PVW. This research seeks to estimate additional willingness to pay (WTP) for electricity produced using W2H over that produced using traditional power sources, such as coal and nuclear. For the purpose of the estimation, a contingent valuation survey of 1000 people was performed employing the closed-ended one-and-one-half-bound question during November 2020. A spike model is utilized to reflect zero WTP values that a number of interviewees reported in the survey. Several factors affecting the additional WTP were also analyzed to derive implications. The average WTP was computed as KRW 27.7 (USD 0.025) per kWh with statistical significance, which reaches 26.4% of the electricity price. One more point to note is that 54.3% of the respondents stated a zero WTP as they thought that W2H is of no value to them or were worried that the W2H project could increase electricity bills. Highlights: South Korean government is pushing for waste-to-hydrogen (W2H) project. W2H can reduce environmental problems from wastes and greenhouse gases emissions. Additional willingness to pay (WTP) for consuming power from W2H is estimated. The WTP amounted to 26.4% of the electricity price. It should be noted that 54.3% of the interviewees revealed zero WTP.